PROFIT BusinessCast

If you're running a startup, you'll take help anywhere you can find it. But Fresh Startups' Saul Colt cautions entrepreneurs to look critically at accelerator programs selling the "modern-day startup dream." Current programs focus heavily on pitching, says Colt, which is only a small part of building a successful business. The result: startups that land funding still don't know what to do with that money or how to run a business, argues Colt.

That's why Colt and his partners at innovation and design firm Kinetic Café have started a new accelerator with a different approach. Fresh Startups is a partnership between Freshii restaurants and Kinetic Café. It's looking for health and wellness startups to join its six-month program it claims will help build and scale a breakthrough business, not just create a deck for investors.

Colt says the typical accelerator measures success by how much money it, as an entity, can raise for its startups. "Demo days are these lavish events, almost like weddings, but the value isn't really for the startups," says Colt. "It's a way for the accelerator to attract new companies."

Most accelerators don't give their startups the attention the actually need to grow and prosper, charges Colt, which is why entrepreneurs should be wary of any accelerator program claiming it will. Program directors mean well, says Colt, but they're not equipped to give startups all the mentoring and hands-on advice they need.

"Don't get me wrong," he adds. "Accelerators are not a bad thing. The current accelerator model, however, is a little broken."

Want to attract more customers, or more high-profile clients? Traditional marketing might get you there. But Barlow Publishing's Sarah Scott thinks you'll have better luck if you become an author. When you're a book author, says Scott, you're suddenly an expert in your field.

Barlow Publishing is one of a burgeoning number of self-publishing services, though she says her approach to the author-pay model is unique. Barlow's staff will hold your hand throughout the entire process, from idea to design to distribution, production and marketing. "There's nobody who does what I do," says Scott.

Why publish a book?

If you're in the kind of business where you have to differentiate yourself from your competitors, Scott says this is a great way to do it. It shows your clients that you're a thought leader. "Show them that you know what you're talking about," advises Scott. "Be the one to educate them."

But a book isn't a brochure. Scott cautions that your book had better cover more than just the service you're selling; you have to have something insightful to say.

That image you have of the tough, take-no-prisoners boss who can't afford to be the "nice guy" in negotiations? It doesn't have to be like that at all, says lawyer-turned-author Tali Raphaely.

Negotiating is a give and take, says Raphaely.You can ask for things, but you need to offer things in return.

After years of giving advice to family and friends on negotiating, Raphaely recently wrote The Complete Guide On How To Negotiate. "I wanted to write something that didn't include all the longwinded theory or history, just practical advice," he says.

People think negotiating equals confrontation. They think it's going to be a war, with one winner getting what he wants. That doesn't have to be the case, says Raphaely. You can stand your ground and still be likable.

How?

Raphaely says the biggest mistake people make is not listening. "Don't assume you know what the other party wants or why they want it," he cautions. Listen to people and respect their viewpoints and you'll develop the people skills that don't come naturally to most, he advises.

Cameron Taylor's company BOATSmart! is in year three of a successful partnership with mega-retailer Canadian Tire. The company is one of 20 private businesses catering to recreational boaters who need their pleasure craft operating certification. The certification is federally mandated, but the government is letting the private sector carry out the training process.

BOATSmart! has been able to set itself apart from the competition, establishing itself as the most recognized brand among a field of businesses offering similar services. Taylor says the business differentiates itself by presenting their services in unique ways. For instance, producing narrated, animated versions of their study guide online. But partnerships with heavy-hitters like Canadian Tire and Nissan haven't hurt, either. A marketing partnership with Nissan has yielded great results; and Canadian Tire has helped BOATSmart! reach customers where they live, work and play.

Not a lot of SMEs are able to strike successful relationships with big corporations. How did BOATSmart build these partnerships?

On today's episode of the PROFIT BusinessCast, Taylor talks about working within a government framework, knowing which major brands are the right partners for your business and convincing those companies that your brand is a good fit for them.

Toy company Great Circle Works Inc. is really a design company. Director Mark Cahsens is always on the hunt for creative designers—people who can take a basic, plastic child's sled and turn it into a must-have.

How do they do it? Great Circle Works sources its designers—almost all of whom are freelancers to the company—globally. He'll work with skateboard designers and other non-traditional toy designers to push the limits of what plastic and other materials can do.

What he won't source globally: manufacturers. Great Circle Works produces its toys in Ontario—and it's not because of some sense of domestic pride or go-local mentality. It's cheaper, better and faster, says Cahsens.

On today's episode of the PROFIT BusinessCast, Cahsens talks about how to source new talent from around the world, nurture their creativity and produce a unique product locally.

Chris Eben turned an event to help entreprneurs start businesses into a business in itself. The founder of Startup Weekend Toronto has been in the startup and tech space most of his career. After spending some time in Silicon Valley during the first internet boom in the late 90s, he now works with startups, building web and mobile solutions for them. A few years ago, he got involved with non-profit organization Startup Weekend. The global, grassroots movement headquartered in Seattle, Washington, has spawned 200 startup weekend events around the world. Eben founded Startup Weekend Toronto, making Toronto the first Canadian city to host a Startup Weekend—now, there are 25 other Canadian cities participating.

Eben says what makes the weekend worthwhile is the chance to get much-needed feedback on ideas, and coaching for those who have yet to nail their pitch. He admits that he was surprised to see real, viable businesses come out of the weekend.

The organization has gained momentum thanks, in part, to people like Eben running events in their own cities. Startup Weekend now has a staff of about 30 people. They've received funding from the Kauffman Foundation, sponsorships from Coca-Cola, the Gates Foundtation, Microsoft and others and are now looking at global partnerships.

At the core of the event's success is the need for brutally honest feedback and, at times, coaching, for new startup ideas. "Too many people go out with an idea and they never properly validate it," says Eben.

How does an entrepreneur like Tony Lacavera earn $800 million in financing?

Katherine Roos, manager of Enterprise Toronto, heard Lacavera answer that question at an event several years ago. "I earned that financing," he said. "My first round of financing was $5,000 on a credit card; and then I earned $50,000; and then I earned $1 million."

"Entrepreneurs earn the right to achieve significant financing to fund their growth," says Roos. It's next to impossible for a startup to access venture capital in its early years, a reality Roos says more entrepreneurs need to accept.

"We love talking about financing; that's a sexy topic in the small business community—and any business that's going to grow is going to need to finance that growth," she says. "But in reality, the majority of businesses aren't applying for venture financing—less than 1% of businesses are successful in earning venture financing."

In the early stages of launching a new venture, it's all about getting some traction and making a profit early so that you can attract the attention of investors, explains Roos. One of the errors she sees early-stage entrepreneurs make is that they come to Enterprise Toronto looking for grants or wanting to know where to get venture investment but they haven't done the planning necessary to set themselves up for success.

Roos says money is, and always will be, one of the top three concerns for small business owners (along with sales and marketing and HR). But it's not raising funding they should be worried about; it's healthy cash flow. "When people are concerned about money, it's usually related to planning for growth. It's about setting yourself up for financing and growth rather than everybody running around pitching investors," says Roos.

To hear Roos' thoughts on ecommerce (a "very hot topic"), social marketing (it's more than just putting up a website), finding the right people for your team (don't hire your friends!), onboarding and more, click on the iTunes icon below and download this week's BusinessCast.

The biggest mistake entrepreneurs make when looking at whether or not to rent or buy? Thinking you can do it yourself, says Dianne Usher, president of the Toronto Real Estate Board. Google all you want, says Usher, but it won't make you an expert. Smart business owners will find an accountant and a lawyer to advise them.

On today's PROFIT BusinessCast, Usher discusses the pros and cons of renting versus buying when you're looking for office space.

RENTING

Pro: There's no long-term commitment and you're not vulnerable to local market economies if you need to sell.

Con: You can be restricted if you need to upsize or downsize. There may also be restrictions on your usages or any improvements you might want to make.

Usher's tip: Ensure that your lease allows you to downsize and sublease—and watch out for the disruption clause.

BUYING

Pro: More and more entrepreneurs are choosing to buy duplexes and convert them into office space. One of the biggest benefits to owning a condo or house is that you can leverage your equity to help finance your business if you're having cash flow issues.

Con: Markets can be volatile, which means your great investment (and source of equity) is potentially at risk.

Tip: The pros only outweigh the cons here in certain regions and industries.

Listen to the podcast for Usher's advice on what conditions make buying the right choice and what to do once you've made the decision to buy.

Part of Michael Murphy's job as vice-president and country manager at Citrix Systems is to seek out markets with the biggest potential for the global brand to sell into. In this week's episode of the PROFIT BusinessCast, host Robert Gold asks Murphy what specific tools help keep Citrix on top of its business.

Murphy's top three:

1. A web-based CRM tool for sales forecasting and opportunity management. The company uses SAS software to track and report potential customers. They use social computing site Podio internally to generate form dashboards that staff can use to keep on top of leads. Platforms like this allow Citrix to do more collaborative marketing rather than sending around email after email.

2. Spreadsheets. "No matter how automated and web- or cloud-based a company is today, I think reliance on spreadsheets is still pretty heavy," says Murphy.

3. Third-party reports. Murphy consumes a lot of industry publications and magazines, whether they focus on the Canadian channel, the Canadian technology space or business in general. "The information and metrics [in these publications] helps trend our actions," he says.

Murphy also shares his lessons for leaders of other fast-growing companies looking to hone their sales infrastructure. Most important: work from the customer back not the other way around. "People get caught up in their own vision of how things should be done rather than what the customer actually wants them to be and how to satisfy those customers," says Murphy.

It's the 300th episode of the BusinessCast. Six years of weekly business podcasts and hosts Robert Gold and Andrew Brown are still going strong, drawing on the people who have built, grown and sold businesses to bring our listeners lessons and insights.

In this episode of the PROFIT BusinessCast, Gold and Brown look at some of the most pervasive themes across all 300 episodes.

Marketing is a hot topic, though Brown says they've mostly worked to clarify what exactly it means. "People think of it as a series of tools or as an extension of sales," he says. But over the series of podcasts, it's become clear that marketing plays a role in sales, as well as having an impact on reputation and retention. "Marketing is revenue, reputation and retention," says Brown. And what about social media? It's just another tool; it does not a marketing campaign make. And it also has to be connected to your overall strategy, stresses Brown.

How to be a great leader is another topic that comes up repeatedly. Business owners still grapple with how do we get people excited about something, whether it's employees or potential customers. "You can't have leaders without followers," says Brown. Leaders need to know, not just how to be charismatic, but who will follow and how to engage them.

"If you don't measure, you can't manage." We've heard it time and time again. But Brown says the message still hasn't gotten through. For a lot of entrepreneurs, cash is still king. "In Canada, we live on cash flow. And because all we're living on is cash flow, we're not looking down the road," says Gold, who names finance as one of the core issues addressed in the podcasts.

There have been a lot of episodes devoted to that first 100 days with a new employee. "A lot still don't understand the onboarding process," said Brown. HR in general is an area that continues to give even the most seasoned entrepreneur trouble.